South Indian Bank on Thursday reported an 88% year-on-year (y-o-y) decline in its first quarter net profit to Rs 10.31 crore, largely due to higher credit costs. The Thrissur-based lender had registered a net profit of Rs 82 crore during the year-ago period.
Bad loans increased substantially with gross non-performing assets (NPA) as a percentage of gross advances being reported at 8.02%, compared with 6.97% in the preceding quarter and 4.93% in the year-ago period.
Net NPA as a percentage of gross advances stood at 5.05%, against 4.71% in the preceding quarter and 3.09% in the first quarter of FY21. Fresh slippages in the quarter were seen at Rs 879 crore.
During this quarter, the bank improved the provision coverage ratio to 60.11%, against 58.73% in the March quarter.
Murali Ramakrishnan, MD & CEO, said there has been a de-growth in the asset book with a decline in corporate loan portfolio. The prevailing pandemic scenario impacted the growth in the business and the personal loan segment.
Total income of the bank has declined 3.9% y-o-y to Rs 2,086.46 crore. The operating profit for the quarter stood at Rs 512.12 crore, against Rs 403.68 crore during the corresponding period of the previous year.
The capital adequacy ratio stood at 15.47% as on June 30, 2021.